Mobile virtual network operators in New Zealand

Mobile virtual network operators (MVNOs) buy wholesale services from mobile networks and sell them to customers.
They can do this without needing to own or invest in network infrastructure.

Often run by well-known consumer companies, MVNOs typically focus on price, branding and address niche markets or customer needs not fully serviced by the major carriers.

Mobile as a brand extension

Warehouse Mobile is an example. It extends a retail brand into mobile services, focusing on low-cost, no-frills plans aimed at budget-conscious users.

Small MVNO market

New Zealand’s MVNO market is small by international standards: around two percent of the market. In Australia MVNOs are close to 20 percent of the market.

Elsewhere in the OECD the share typically ranges from 10 to 20 percent.

Despite their small size, MVNOs bring a degree of competition and innovation to the market without changing the underlying structure.

Why MVNO uptake is low

Intense competition among the three major carriers leaves little room for MVNOs to compete on price, which is often a primary entry strategy for virtual operators.

New Zealand’s largest MVNO, Skinny, is not a true independent operator but Spark’s budget brand. It was created to provide a low-cost option without cannibalising Spark’s core premium market, effectively occupying the space an independent MVNO might otherwise fill.

Mergers have reduced the number of MVNO subscribers. For instance, the Vocus-2degrees merger caused MVNO subscriber numbers to drop from 106,000 in 2021 to 77,000 in 2022 because Vocus was previously an MVNO on another network.

The Commerce Commission has previously found the mobile market to be sufficiently competitive without an active MVNO sector and has historically decided not to take specific action to stimulate it.

More recently the Commerce Commission has been looking at potential regulatory intervention to address the "nascent" wholesale mobile market and the lack of MVNOs in New Zealand.

New Zealand’s MVNO market remains small by international standards and is shaped by the structure of the mobile sector. While virtual operators offer alternative pricing and service options, their influence is limited compared with countries where wholesale access is more developed.

‌ Further reading on mobile virtual network operators

• What is a mobile virtual network operator?
• New Zealand has fewer MVNOs than most countries
• MVNOs call for regulatory action on satellite texting

This page is part of a series of background briefings on New Zealand’s telecommunications industry:

• Telecommunications regulation in New Zealand
• Fibre networks in New Zealand
• Rural telecommunications in New Zealand
• New Zealand telecommunications industry